Vanguard Simple IRA: Cant seem to fund it?

[thefed]

I got a confirmation today that my new Simple IRA is set up and ready to go. The problem is that any option i choose on vanguards website to fund it (auto withdraw, direct deposit, buy shares etC) results in the same "you can not do that on this account" error.


I will call them monday, but the curiosity is killing me!!! could it be that im missing something... or is this normal? Can i not just send $$ as I please...or automatically?


Thanks!

[gindie]

My wife was in your situation and it can be a little confusing, especially if you are the only one affected by the plan. She had her's with Fidelity.

With a SIMPLE IRA, you, as a self-employed individual, have two "sides" of the equation to worry about, the employer side and the employee side.

On the employer side, there is the SIMPLE IRA plan where you establish the rules of the plan, establish whether you are going to do the 3% match or the 2% automatic contribution, etc.

On the employee(s) side, you open the individual investment acounts where the money will ultimately reside.

With Fidelity, there was a separate SIMPLE IRA administration web site where you, as the employer, directed the employee(s)' salary deferrals from your company bank account into their actual investment accounts.

So, for example, my wife would get her monthly check from her business activity and deposit it into her bank. Then, she would visit the SIMPLE administration site, which would have a list of all employees under her that had individual SIMPLE IRA's. In her case, she was the only one listed. She would enter the amount of the salary deferral into the box next to her name and the date the funding would take place. Then, on that date, Fidelity would EFT the specified amount from her bank account to her linked investment account.

So, the only way to fund a SIMPLE is through salary deferrals, much like a 401K at an employer.

[gindie]

thefed -

I found a page at Vanguard that describes the procedure for funding, and it appears to the be similar to Fidelity's. It's at http://www.tinyurl.com/ypx3c8

[thefed]

lol. turns out i actually got the admin email from them, but it got sent to spam. so thanks to your link there...i was able to search my mail for a key term and found it (out of the 200 junk mails i got yesterday!)


thanks!

[oneleaf]

Hello,
I was wondering if you can tell me how long it took to process the paperwork?

My wife sent in her Simple IRA (employer authorization and employee account signup) almost 2 weeks ago. She has inquired with the Small Business department and they do not have record of the application.

Do you know if they are backlogged and take awhile to get to new mail? We are concerned and not sure whether she should send another package. Seems unlikely that something would get lost sent to a PO Box.

Thanks!